Temporary Layoffs in Ontario: When They Are Legal and When They Are Constructive Dismissal
Ontario employers can temporarily lay off employees under the ESA — but only within strict time limits, and only if the contract allows it. Exceed those limi...
Frequently Asked Questions
How long can a temporary layoff last in Ontario?
Under the ESA, a temporary layoff can last up to 13 weeks in any 20 consecutive weeks. If the employer continues benefit payments or makes substantial payments during the layoff, the limit extends to 35 weeks in any 52 consecutive weeks. Beyond that, it is deemed a termination.
Can my employer lay me off without a layoff clause in my contract?
At common law, no. Without a contractual right to lay off, a unilateral temporary layoff is a constructive dismissal, regardless of how long it lasts. The employer may comply with the ESA time limits but still be liable for common-law damages.
Should I wait out the layoff or treat it as constructive dismissal?
It depends on your contract, your financial situation, and how likely recall is. If you wait too long, a court may find you accepted the layoff. If you act too quickly, you lose the chance to be recalled. Get legal advice as soon as you are laid off.
Do I get EI during a temporary layoff?
You may qualify for Employment Insurance benefits during a temporary layoff. Apply to Service Canada as soon as you are laid off — there is a one-week waiting period, and processing takes time.
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